Soybeans End 10¢ Lower Friday

The dollar is weaker.

DES MOINES, Iowa-- On Friday, the CME Group’s farm markets finished lower.

At the close, the March corn futures settled 2¼¢ lower at $3.65¼, and new-crop December 2017 futures finished 1¾¢ lower at $3.92¾ per bushel.

March soybean futures finished 10¼¢ lower at $10.27; November 2017 soybean futures closed 8¼¢ lower at $10.09¾.

March wheat futures settled 4¼¢ lower at $4.30¼.

March soy meal futures ended $2.20 a short ton lower at $331.60. March soy oil futures finished 0.73¢ lower at 33.86¢ per pound. 

In the outside markets, the Brent crude oil market is $0.27 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 177 points higher.

 

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Thursday’s Grain Market Review

On Thursday, the CME Group farm futures close mixed.

At the close, the March corn futures settled ¾¢ lower at $3.67½, and new-crop December 2017 futures finished 1¾¢ lower at $3.94½ per bushel.

March soybean futures closed ½¢ higher at $10.37¼, while November 2017 soybean futures finished 6½¢ higher at $10.18½.

March wheat futures closed ¾¢ higher at $4.34½.

March soy meal futures are $2.20 short ton lower at $333.80. March soy oil futures closed 0.28¢ higher at 34.59¢ per pound. 

In the outside markets, the Brent crude oil market is 40¢ per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 37 points lower.

Dustin Johnson, EHedger grain analyst, says that traders have shifted the direction of the soybean market.

“In that market, traders were bull spreading while soybeans trended lower a few days ago and now they are bear spreading in an upward market today. Not quite sure how to empathize with the market participants that are moving price action right now. Otherwise corn and wheat are just flat, nothing to write home about there either,” Johnson says.

On Thursday, the USDA Weekly Export Sales Report showed that corn sales reached the high end of expectations, soybeans beat.

Wheat = 510,200 metric tons vs. the trade’s expectation of between 300,000 and 600,000 mt.

Corn = 1.14 million mt. vs. the trade’s expectations of between 850,000 and 1,400,000 mt.

Soybeans = 975,000 mt. vs. the trade’s expectations of between 400,000 and 900,000 mt.

Soybean meal = 395,900 mt. vs the trade’s expectations of between 150,000 and 300,000 mt. 

Separate from the Weekly Export Sales Report, the USDA announced Thursday a fresh sale of corn.

  • Export sales of 110,000 metric tons of corn for delivery to Japan during the 2016/2017 marketing year.
  • Export sales of 140,000 metric tons of corn for delivery to unknown destinations during the 2016/2017 marketing year.

The marketing year for corn began September 1.

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm futures markets used the latest demand reports to settle higher.

At the close the March corn futures finished 8½¢ higher at $3.68¼, and new crop December 2017 futures finished 9¢ higher at $3.96¼ per bushel.

March soybean futures finished 12¼¢ higher at $10.36¾, while November 2017 soybean futures finished 11¢ higher at $10.12.

March wheat futures finished 13¢ higher at $4.33¾.

March soy meal futures closed $1.40 short ton higher at $336.00. March soy oil futures settled 0.46¢ higher at 34.31¢ per pound. 

In the outside markets, the Brent crude oil market is 70¢ per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 26 points higher.

On Wednesday, private exporters reported to the U.S. Department of Agriculture export sales of 236,700 metric tons of soybeans for delivery to unknown destinations. Of the total, 170,700 metric tons is for delivery during the 2016/2017 marketing year, and 66,000 metric tons is for delivery during the 2017/2018 marketing year.

The marketing year for soybeans began September 1.

Jack Scoville, the PRICE Futures Group’s senior market analyst, says that beans are higher, in part, on demand.

“Almost all of the ag markets are higher. So, there are other reasons, as there was not much demand showing anywhere else. There seems to be general fund buying in commodities right now that is supporting things. Other than that, not hearing much at all. Farmers are quiet, industry is quiet, and the specs buying and selling, but the funds buying,” Scoville says.

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Tuesday’s Grain Review

On Tuesday, the CME Group’s farm futures stay mostly higher.

At the close, the March corn futures settled 2¢ higher at $3.59¾, and new-crop December 2017 futures finished 1¾¢ higher at $3.87¼ per bushel.

March soybean futures finished 1¾¢ higher at $10.24½, while November 2017 soybean futures ended 3¢ lower at $10.01.

March wheat futures closed 6¾¢ higher at $4.20¾.

March soy meal futures ended 20¢ a short ton higher at $334.60. March soy oil futures closed 0.24¢ higher at 33.85¢ per pound. 

In the outside markets, the Brent crude oil market is 18¢ per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 131 points lower.

Jason Roose, U.S. Commodities grain analyst, says that it’s a weather market.

“Grains are mixed today, after a weak Monday trade with improved weather in South America vs. good export inspections on corn and soybeans. Slow producer selling will give the grains added support on breaks.”

 

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Monday’s Grain Market Review

While the stock market has been experiencing what’s being called the Trump Bump since the election, the farm markets may be faced with a Trump Slump on Monday.

The 20% import tariff threatened toward Mexico and a broad-based sell-off mentality with investors are keeping the ag markets sharply lower.

At the close, the March corn futures settled 4¾¢ lower at $3.57¾, and new-crop December 2017 futures finished 3¾¢ lower at $3.85½ per bushel.

March soybean futures settled 26½¢ lower at $10.22¾; November 2017 soybean futures ended 21¼¢ lower at $10.04.

March wheat futures closed 6½¢ lower at $4.14.

March soy meal futures closed $8.60 a short ton lower at $334.40. March soy oil futures ended 0.66¢ lower at 33.61¢ per pound. 

In the outside markets, the Brent crude oil market is 37¢ per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 163 points lower at 19,929 points.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says the weather in Argentina is driving the beans down hard. “Precipitation is set to return to needed areas of Argentina later this week. The U.S. dollar was higher but has now come back off, so that reason is fading. People are looking for the situation in Argentina to stabilize,” Scoville says. 

There might be too much rain coming to Brazil later this week, but that will not initially be a problem, Scoville says. 

“It might become a problem, if the rains keep up and the overall progress falls behind. For now, northern Brazil is ahead of average, so the rain will not be a big issue. Trump and Mexico and China are still around and offer no reason to buy. Even so, I want to buy the market,” Scoville says.

Mike North, president of Commodity Risk Management Group, says there’s no doubt that the saber rattling amid the conversation of a wall on our southern border has raised concern in our grain markets. 

“Corn, especially, is vulnerable, if Mexico retaliates with any sort of trade sanctions. On top of that, markets have tested the top side of four-month ranges. Technical trade ensues with sellers gaining the upper hand,” North says. 

“This action began a week ago. Today’s trade is just a continuation. Vast inventories of product going into the winter doldrums are not a helpful feature, either. Buyers will once again find value in our markets, but it may take a while for this largely uninspired crowd to revisit the market,” he says.

Al Klus, Kluis Commodities, says the markets are feeling uncertainty.

“With the Trump actions on immigration this weekend, stocks and commodity prices will move lower because no one likes the uncertainty it creates,” Kluis says.

On Monday, private exporters reported to the U.S. Department of Agriculture export sales of 105,000 metric tons of corn for delivery to Colombia during the 2016/2017 marketing year.

The marketing year for corn began September 1.

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